GM placates dealers on ads, then drops bombshell

AUTHOR(S)

Guilford, Dave

PUB. DATE

October 1999

SOURCE

Advertising Age;10/4/1999, Vol. 70 Issue 41, p4

SOURCE TYPE

Trade Publication

DOC. TYPE

Article

ABSTRACT

This article reports on the plan of General Motors Corp. (NADA) to buy and operate dealerships in the U.S. as of October 1999. Senior GM executives told dealers of the company's ownership plan at a meeting held September 27, 1999, which was called to respond to a white paper from the National Automobile Dealers Association (NADA). The NADA, in its document, had listed dealer concerns ranging from poorly coordinated advertising to distribution, training costs and e-commerce. At the start of the meeting, GM addressed some of these concerns to mend relations with dealers. But GM surprised dealers when it told them of the dealership acquisition plan. In a comment, NADA Chairman James Willingham said the plan is a disaster.